Brew Union Faces Fine of up to 10% of Its Turnover for Anti-Competitive Practices in Austria

The Federal Competition Authority (BWB) has recommended imposing a fine on Brew Union due to violations of abuse and cartel prohibitions. Following extensive investigations, the BWB found that Brew Union used its dominant market position to hinder the market entry of competing beer producers and force out existing beverage retailers.

The Cartel Court has the authority to levy fines of up to 10 percent of the group’s turnover from the previous year. In 2022, Brau Union generated a turnover of 850.6 million euros, as reported by the “WirtschaftsCompass.”

In October 2021, anonymous complaints regarding Brew Union’s conduct emerged, leading to a headquarters search in Linz in April 2022. The company has been accused of leveraging its dominant market position to intimidate beverage customers and prevent them from purchasing beer unless they also bought other beverages from Brew Union.

Criticism of Brew Union’s market power has been ongoing, particularly from independent Austrian breweries such as Stiegl and Ottakringer. The company, owned by Heineken since 2003, encompasses brands like Gösser, Zipfer, and Puntigamer, among others.

Formed in 1998 through the merger of Österreichische Brau AG and Steirerbrau, Brew Union operates 15 beer brands and nine breweries with 2,700 employees. The company’s alleged anti-competitive practices have raised concerns in the industry and prompted the BWB’s call for punitive action from the Cartel Court.